Sheinbaum, Trump Near USMCA Deal but New Demands Emerge

Mexico City — President Donald Trump added new issues to trade negotiations with Mexico during a call on Wednesday with President Claudia Sheinbaum, even as the two countries edge closer to an agreement that would unblock the review of the USMCA trade pact.

Sources cited by U.S. media described the call as “so-so” and said it stirred “a bit of noise” because new matters came up in the conversation between the two leaders.

The substance of those new demands was not disclosed. But according to Washington sources consulted by Jorge Molina, a specialist in trade and public policy, the issues Trump is putting on the table include the fight against drug trafficking, automotive rules of origin, and reducing Chinese content in the artificial intelligence equipment Mexico exports to the United States.

“Trump is looking for a ‘win’ because he has realized that with Canada that battle is lost and the future of the trade deal with them is up in the air,” Molina said.

Drug Trafficking Enters the Trade Talks

One of the new elements is the U.S. narcotics report sent to Congress on Tuesday, Sept. 15. Molina said that, according to his sources, Trump asked Sheinbaum during the call for more results in the fight against drug trafficking.

The pressure comes after Washington acknowledged the Mexican government’s actions against the cartels but insisted that Mexico must do more.

Mexico remains on the U.S. list of major drug transit or illicit drug producing countries. The designation alone does not mean Washington considers the Mexican government to have failed its anti-drug obligations, since U.S. law itself states that the listing also reflects geographic, commercial and economic factors.

The issue is taking on growing importance in the context of the trade review, because the Trump administration has folded economic security and the fight against organized crime into its relationship with Mexico.

For Arturo Coste, managing director of Expandia Advisory Group, the discussion can no longer be viewed exclusively through a security lens.

“Mexico has a problem that can no longer be treated only as security,” he said.

In his view, security, corruption and criminal infiltration also shape business decisions because of their effect on operating costs, supply chains, regulatory compliance, supplier selection and the risk attached to new investments.

Fourth Round of USMCA Talks Postponed Again

The fourth round of trade negotiations between Mexico and the United States has been postponed once more, with no date set, according to the Economy Department.

“The date of the fourth round of USMCA review negotiations is not confirmed,” the department said.

The schedule had already slipped several times: the meeting was initially planned for the first week of September, then for the first half of the month, and in recent days Sept. 21 had been floated as the date agreed by the negotiating teams. Unofficially, the round is now being discussed for Sept. 28 and 29, though neither government has confirmed it.

Until a few days ago, José Medina Mora, president of the Business Coordinating Council (CCE), confirmed that the fourth round would take place during the week of Sept. 21. The private sector had even listed the reduction of tariffs derived from Section 232, which affect sectors such as automotive, steel and aluminum, among its main goals for the meeting.

“We need to achieve a reduction in those tariffs to be competitive with other countries that the United States has hit with a lower tariff,” he said.

According to Molina, Washington has a very tight agenda in the coming weeks and Mexico does not figure on its list of priorities.